LAS VEGAS — In a significant legal development, a Nevada resident has been sentenced to over four years in prison, reflecting the severity of his involvement in a prolonged fraudulent venture. He is also mandated to repay a substantial $6.1 million in restitution.
Mykalai Kontilai, previously known as Michael Contile, orchestrated an investment scam through his enterprise, Collector’s Coffee Inc., which traded as Collector’s Café. This California-incorporated company, headquartered in Las Vegas, was purportedly on the brink of launching a groundbreaking online auction platform for collectibles, such as Hollywood and sports memorabilia. From 2012 to 2018, Kontilai misled investors with numerous false claims, including assertions that he had personally invested millions and was not drawing a salary. These deceptive tactics secured approximately $23 million from investors, of which he diverted $6.1 million for personal luxuries, including high-end goods and properties.
The investigation into Kontilai’s activities began around 2017 when the U.S. Securities and Exchange Commission (SEC) scrutinized his misuse of investor funds. Kontilai attempted to derail the investigation by fabricating documents and lying under oath. He was charged on June 3, 2020, for his actions, and separately in Colorado on March 10, 2020. Fleeing to Russia to evade legal repercussions, Kontilai was eventually apprehended in Germany on an Interpol Red Notice and extradited to the U.S. in May 2023.
On November 21, Kontilai admitted guilt to one count of wire fraud as part of a plea deal, leading the government to seek dismissal of the Colorado charges.
This announcement was jointly made by Principal Deputy Assistant Attorney General Nicole M. Argentieri from the Justice Department’s Criminal Division, U.S. Attorney Jason M. Frierson for the District of Nevada, and Special Agents Spencer L. Evans from the FBI Las Vegas Field Office and Carissa Messick from the IRS Criminal Investigation’s Phoenix Field Office.
The investigation was carried out by the FBI and IRS-CI, with critical support from the Justice Department’s Office of International Affairs to secure Kontilai’s extradition. Trial Attorneys Brandon Burkart and Sara Hallmark, alongside Assistant U.S. Attorney Jessica Oliva for the District of Nevada, prosecuted the case, with former Fraud Section Trial Attorney Emily Scruggs providing key assistance.
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